AAT Level 4 Practice Test
AAT L4 Budgeting and Forecasting 2
A business uses zero-based budgeting (ZBB).
Which statement best describes ZBB?
Select your answer
A
Each department starts from last year's budget and adjusts for inflation
B
Every activity must be justified from scratch each budget period, regardless of past budgets
C
Budgets are set by senior management and imposed on department heads
D
Only new activities need to be justified; existing activities are automatically approved
Hint
